1:24-cv-07223
S.D.N.Y.Apr 4, 2025Background
- Jillian Lugo filed a lawsuit against Bowery Residents’ Committee, Inc. under the Fair Labor Standards Act (FLSA), alleging wage-related claims.
- The parties reached a negotiated settlement of Lugo’s individual FLSA claims before trial or collective certification.
- The Court required a joint letter explaining why the settlement should be approved, referencing fairness factors outlined in relevant precedent.
- The agreed settlement amount is $65,000, with Lugo’s counsel requesting $19,853.50 as attorneys’ fees and costs (31% of the total).
- There were no opt-in plaintiffs or collective action aspects; the settlement and fee arrangement only involved Lugo.
- The Court reviewed the submissions, found the settlement fair and reasonable, and set a condition that modifications require court approval.
Issues
| Issue | Plaintiff’s Argument | Defendant’s Argument | Held |
|---|---|---|---|
| Fairness and reasonableness of settlement | Settlement is appropriate and justified | Agreed to settle for stated amount | Settlement approved as fair and reasonable |
| Approval of attorneys’ fees (31% of settlement) | Fee is within typical range, no conflict | No objection; based on agreement | Fee request approved as consistent with circuit practice |
| Requirement of court approval for modifications | --- | --- | Court must approve any modification to the agreement |
| Dismissal with prejudice | --- | --- | Case dismissed with prejudice and closed |
Key Cases Cited
- Wolinsky v. Scholastic, Inc., 900 F. Supp. 2d 332 (S.D.N.Y. 2012) (establishes factors for court approval of FLSA settlements)
- Beckman v. KeyBank, N.A., 293 F.R.D. 467 (S.D.N.Y. 2013) (approves attorneys’ fees in FLSA settlements within 30%-33% range)